Stocks continued to decline on Wednesday, as stronger-than-expected U.S. retail sales data left market participants looking for direction. The Dow Jones Industrial Average fell nearly 100 points, while the S&P 500 Index and Nasdaq Composite both lost about 0.6%.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In the spotlight, U.S. retail sales increased 0.6% in December, the Commerce Department reported Wednesday, coming in stronger than the 0.4% expected by Dow Jones. When excluding autos, sales rose 0.4% last month, also besting estimates for a 0.2% increase.
Separately, the National Retail Federation (NRF) reported holiday season sales rose 3.8% year-over-year to $964.4 billion, coming in-line with the trade group's expectations for sales between $957.3 billion and $966.6 billion for the 2023 spending period.
"Consumer spending was remarkably resilient throughout 2023 and finished the year with a solid pace for the holiday season," said Jack Kleinhenz, chief economist at NRF, in a news release.
Also in the headlines, Boeing
On the earnings front, Charles Schwab
"The primary objective coming into 2023 was a successful Ameritrade conversion. By the end of the year, we had transitioned approximately 90% of client assets and accounts with no significant disruptions," CEO Walt Bettinger said in a press release. "We took steps to unlock incremental efficiency, including identifying at least $500 million in cost savings beyond the pre-committed Ameritrade synergies. As part of this effort, we reduced our workforce by approximately 6% of staff, which helped streamline the organization and enables us to prioritize investments in key client initiatives."
In economic news, homebuilder sentiment rose 7 points to 44 on the National Association of Home Builders index in January, marking the highest level since September as mortgage rainrestest rates declined from around 8% in OCtober to about 6% in December. Still, any reading below 50 is considered negative.
"Lower interest rates improved housing affordability conditions this past month, bringing some buyers back into the market after being sidelined in the fall by higher borrowing costs," said Alicia Huey, NAHB chairman, in a statement. "Single-family starts are expected to grow in 2024, adding much needed inventory to the market. However, builders will face growing challenges with building material cost and availability, as well as lot supply."
For Thursday, market participants will react to more housing market data and Fedspeak, as well as earnings reports from companies including Taiwan Semiconductor Manufacturing Company